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JR_Crypto
Sep 24, 2018 10:22 PM

Possible Bearish setup for XRP Short

XRP / DollarBitfinex

Description

Ripple is getting many attention at the moment due to the insane spike on last friday.
Many people, including myself were confident about a possible retracement and a spike upwards again.

Opinions change including mine, at this moment i am not fully confident that BTC will complete the expect small leg-up towards 6670 USD area.
The end of the daily candle is coming close and it looks bearish to me.

That is why i made this XRP bearish setup because i think there are some possible nice % to achieve here.

I have adjusted my earlier idea on XRP and as you can see i think we are still in the ABC correction.
In wave B the triangle appeared in which we went down earlier today.

Now on the 5 min chart i spotted another possible triangle which i would name bearish now due to BTC circumstances.
Did not had to time in my opinion to do proper wave analysis on 5 timeframe, since it looked like it could fall any moment.
Since i want to keep my stoploss tight, i have my stop at C on the triangle, see my setup below:

Stoploss: 0.53USD
Entry: 0.52 (aggressive)
Entry: 0.51 (more passive confirmation)

As i am typing this we are going down a bit, lets see where this ends.
Possible end target is 0.38 ~ 0.40 USD.

Good luck!

Trade active

The price is going the way we expected which is good.
Unfortunately i do not have a lot of time to manage my position today but i am willing to take a small risk here.

On the 5 minute chart XRP keeps bouncing of the 200 EMA line.
15 minute chart the same, keeps bouncing of the 21 EMA line.

I am going to put a stop order slightly above this line.
If my stop order gets hit i will still have a decent 8% profit which is totally fine by me.

Have a good day!

Trade closed manually

Just closed my trade at 0.4545, saw a breakout on EMA level on BTC and XRP.
Since time shortage decided to close my trade with a good 14% profit.

Good trade and will hunt for a new setup tonight!
Enjoy the profit if you entered this trade.
Comments
Scalpn-Ralph
Agreed again! I think BTC and XRP are mostly uncoupled for the the mid term, but downside BTC will definitely produce downside for alts to a certain degree/percentage. Good call. Btw, even though ETH just broke 230, i truly still forcast strong buying in the mid term. Holding for as long as i need to on this one.
JR_Crypto
@ckirkhilton, Remember the stoploss at ETH, the chart looked like a class book example and no need to hold in a possible downtrend.
For now the lowest is 227 USD and mentioned stoploss was 226USD because of possible deep wig.
But i fully agree upon the fact it is still a strong coin to buy for longer term.

Regarding XRP, because there has been such an insane volume on friday there is a high probability for high volatility.
But again, quite clean entry with manageable stoploss and some nice possible gains if this succeeds.
Scalpn-Ralph
@JR_Crypto, With crypto in general I've been stopped out on fake downside breakouts too many times. I set an alarm for crossing of 223,...and 221 is the deepest I'll go before releasing. Remember that rogue candle closes below the EW theory wave 1 high point don't necessarily invalidate the potential EW setup, (even though the definition will tell us otherwise, i often discount lower shadow wicks as simply stop-loss chasing and therefore allow for that potential volitility. I've seen it many times.)

Yes, spot on with XRP! Good luck out there!
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